Despite efforts to increase use of sanctioned AI tools in the workplace, many workers are sticking with unauthorized AI tools instead.

Around half (46%) of knowledge workers throughout the US, the UK and Germany wouldn’t relinquish so-called ‘Shadow AI’ tools even if employers banned them.

That’s according to research from Germany software giant, Software AG, which surveyed 6,000 knowledge workers across the three nations.

AI use has now reached the point where three in four (75%) of knowledge workers are using these tools as it saves time (83%), makes their jobs easier (81%) and improves productivity (71%).

Furthermore, nearly half (47%) of workers believe these tools will help them to be promoted faster.

Most knowledge workers said they use their own AI tools because they prefer their independence (53%), while a further 33% said it’s because their IT team does not currently offer the tools they need.

Speaking exclusively to UNLEASH about the rise of Shadow AI, Software AG Director, Steve Ponting, says that workers “have been clear” and that they will continue to use AI “whether it is sanctioned or not.”

“This means that businesses could struggle to manage AI applications, leading to cyber-security risks, skills gaps, and inaccurate work,” Ponting comments.  

For HR leaders, this presents “serious compliance risks”, he explains, particularly in the context of the EU’s AI Act coming into effect whereby organizations in Europe that use AI “in recruitment of any of their employee decision-making” must be compliant.

“Deploying AI systems in these ways fall subject to stringent rules for ‘high-risk’ AI, which could mean fines, restrictions or brand damage for those who fail to comply,” Ponting adds.

Danger lurks in the shadow of unauthorized AI use

Despite the widespread use of unauthorized AI tools at work, those using Shadow AI aren’t ignorant of the dangers of their doing so.

Employees recognized cybersecurity (72%), data governance (70%), and inaccuracy of information as risks associated with their actions, while employers will be alarmed that few employees take precautions such as running security scans (27%) or checking data usage policies (29%). 

Indeed, this problem will only become more prevalent as the volume of workers using AI grows.

Businesses must have a plan in place to reduce risk, build skills and plan for AI’s inclusion in daily work. If people are determined to use their own AI, training is vital in this regard,” Ponting tells UNLEASH.

“Better training would make 46% of employees use AI more, but crucially, they would use it effectively and responsibly.”

Ponting highlights that employers should be making efforts to “consult more” with workers to understand which tools they want and what will make a difference to their experience.

Introducing “more helpful” tools should begin to tackle the “secrecy that surrounds AI in the workplace,” he adds.

“As AI creates new ways of working, it’s all too easy for businesses to lose control of what’s going on with their operations,” Ponting explains.

“Embracing AI starts with defining the change, understanding the impact, and being flexible to incorporate new ways of working. This will allow HR and business leaders to take charge of the change, bring visibility to it and harness it for good.”